Donald Trump's words raise fears of a resumption of full-scale war. Wall Street's main indexes fell to session lows on Wednesday after the US president announced further attacks on Iran. Tension in the Middle East rose again on Tuesday evening after US forces launched an attack on Iran.
See also: Donald Trump boasts about a secret mission in Hormuz. “The United States controls the strait”
The price of oil is rising. Donald Trump added fuel to the fire
US Crude Oil Futures WTI increased by 2% on Wednesday, closing at $90.03. per barrel. Oil futures Brentthe international benchmark, gained 1.8 percent, closing at $93.10. per barrel.
“We hit them hard yesterday and we will hit them again today,” Trump said in a televised address. “We will attack them, very hard.”.
US forces carried out attacks on Iran on Tuesday evening, after an American Apache helicopter was shot down the day before.
See also: Donald Trump's words may shock Americans. “I love”
Donald Trump: Iran will have to pay the price
The US president warned earlier on Wednesday on social media that Iran “will have to pay the price” for too long negotiations on the deal.
Defense Secretary Pete Hegseth announced Wednesday evening that the United States would soon begin bombing “key facilities” in Iran. “Central Command will be busy tonight,” he said.
See also: Oil prices react to attacks by the US and Iran. Inventories at their lowest level in months
Wall Street falls
The main indexes on Wall Street ended the session in the red.
Dow Jones Industrial at closing it fell by over 950 points, or 1.87%.
S&P 500 at the end of the day it fell by 1.62%, a Nasdaq Composite decreased by 1.98 percent.
The stock prices of chip manufacturers fell sharply.
Shares are under pressure ahead of SpaceX's Friday IPO. According to analysts, investors may sell off some of their shares to make room for the largest public offering in history.
Analysts estimate that market volatility is increasing as investors struggle with a long list of risks:
— high valuations of technology companies,
— escalation of tensions in the Middle East
— increasing expectations for Fed rate increases
Iran-US talks
Despite the escalation of tension, some analysts believe that Iran and the US will eventually reach an agreement that will allow the opening of the Strait of Hormuz.
“We are optimistic that an agreement will be reached in the coming weeks, even if it is only an apparent solution that will allow navigation to resume through the Strait of Hormuz. Both the US and Iran do not want a return to full-scale war, so we are hopeful that the ceasefire, although fragile, will ultimately hold,” said Mohit Kumar, Jefferies' chief financial economist for Europe.
